Report on Zardari kickbacks dismissed

ISLAMABAD, Pakistan, Nov. 12 (UPI) -- Islamabad dismissed as "a malicious campaign" reports alleging President Asif Ali Zardari got big kickbacks in a French submarine sale to the Pakistani navy.

The reports alleging Zardari received millions of dollars in kickbacks from the 1994 sale of three French submarines were carried by French and local newspapers, Dawn reported.

"This is actually new regurgitation of an old story which was already contradicted by French President Mr. Sarkozy on July 11 this year as 'untrue', 'malicious' and 'mischievous,'" Zardari's spokesman Farhatullah Babar said, Dawn reported.

The allegation said Zardari was suspected of having received the kickbacks and that investigators believe non-payment of the full amount of the agreed kickbacks may have led to the death of 11 French nationals in a 2002 terror attack in Karachi.

"Mr. Zardari was neither the president nor the prime minister nor the defense minister when the submarines referred to in the news item were purchased," Babar said.

He said the submarine purchase was done through proper competitive process by the Defense Ministry.

"Allegations of kickbacks and involvement in the killing of French nationals against the person of the president are, therefore, highly unfortunate and seem to be part of a malicious campaign launched against the head of state of the Islamic Republic of Pakistan," the spokesman was quoted as saying.